Identity Verification with Super and Payroll Data: A Step Towards Financial Inclusion

However, for the one in ten Australians¹ who are credit invisible or unscored due to inadequate credit file information, accessing credit is challenging. This group includes young people, mature adults, and newcomers to the country. Some lack a credit history but are employed and paying superannuation. Others, although no longer credit-active, have a robust superannuation history. Some have re-entered the credit market after events like marriage breakdowns or financial hardship.

Financial inclusion ensures everyone can access affordable financial services. When more people can obtain credit, it fosters economic growth and personal financial stability. To support their credit applications, it is critical that their identities are easily verifiable. Integrating trusted data sources like superannuation and payroll data into the verification process provides an additional layer to help build a more comprehensive view of an individual’s financial stability.

What is a super & payroll search?

The super and payroll search feature of the Equifax IDMatrix identity verification platform supports financial inclusion by enabling the verification of identities that might otherwise be overlooked.

With a coverage of around 58%² of Australia’s 14 million working population, match rates are improved when superannuation-clearing and single touch payroll identity information is included in identity verification checks. Businesses that incorporated this data have reported match rate improvements of up to 8%, particularly for credit thin individuals. For those with little or no credit history, this increases the likelihood of successful identity verification, aiding credit access and building a positive credit history for future financial opportunities.
Governed by strict regulatory frameworks, payroll and superannuation records are highly trusted data sets that can help organisations meet their ‘Know Your Customer (KYC)’ requirements for reliable and independent identity verification data sources. The two data sources are updated frequently according to organisations’ pay cycles, providing businesses early access to new identities as well as identities with strong history.

Quick, efficient, and scalable verification

For financial service providers, real estate agents, telcos or any other business needing to verify customer identity, ensuring legitimate customers meet verification requirements is crucial. Improved verification not only enhances customer experience but also reduces manual processing burdens. For businesses scaling their identity verification processes, accuracy and availability is more critical than ever. Scalability should include use of as many reliable verification sources and implement backup sources to increase the chances of matching an identity. 

The Equifax super and payroll search offers unique insight into risk level. Beyond matching, it provides a risk score that is a summary and reflection of additional data points like email, phone number, physical address and date of birth. This process can be customised to align with an organisation’s compliance requirements, risk profile and business rules. 

This efficient approach is especially useful for digital businesses verifying identity with minimal information, like email and mobile. For these businesses, quick decision-making provides a competitive edge especially when incorporated with reduced fraud risk. 

Verifying the applicant's employer ABN with a super and payroll search is a quick and easy way to understand customer risk profile after conducting a ‘soft employment’ check. Verifying employment details provides reassurance about the validity of an individual’s identity.
 
Combining this with fraud protection allows for two critical processes in one seamless interaction, strengthening identity fraud protection while enhancing financial inclusion.

Let’s build a more inclusive financial landscape where everyone has the opportunity to achieve their financial best.

Contact Equifax today for advanced fraud and ID solutions to protect your business.

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